Continued from last week on reverse mortgages - I hope everyone had a very Happy Valentines Day. When to use a reverse mortgage In the following situations, a reverse mortgage can make sense: — You are facing foreclosure. In this circumstance, it’s nearly impossible to get a traditional home-equity loan, and selling your house outright might mean owing more than you get from the sale. A reverse mortgage can possible save you from losing your house if you have significant equity built up. You can never be foreclosed on or be forced to vacate your home because you “missed a mortgage payment.” — You plan to stay in your home for five years or more. If you sell the house before then and pay back the reverse mortgage loan, then the cost of the loan will seem significant compared to the benefit . If you keep the loan for a long time, you spread the up-front costs for many years. — You want to buy a new home but would be forced to use all of your savings to do it.